Determination of value of supply - In relation to booking of tickets for travel by air provided by an air travel agent [Rule 32(3) CGST Rules] - GST Ready Reckoner - GST

Determination of value of supply in relation of booking of tickets for air travel by an air travel agent - Rule 32(3) of the GST Rules Taxable value in relation to booking of tickets for travel by air provided by an air travel agent is 5% of basic fare in case of domestic travel, and 10% of basic fare in case of international travel. basic fare means that part of the air fare on which commission is normally paid to the air travel agent by the airline. Example: - UB sons is an air travel agent. compute the value of supply of services made by the firm during a month with the help of following particulars P a r t i c u l a r s Basic fare Other charges and fee Taxes Total value of tickets D o m e s t i c Bookings 1,00,000 5,000 4,500 1,09,500 I n t er n a t i o n a l Bookings 2,00,000 20,000 18,000 2,38,000 Computation of value of supply of services made by UB Sons in a month Pa r t i c u l ar s Basic fare Value of supply Basic fare in case of domestic bookings 1,00,000 Value of supply @ 5% [A] 5,000 Basic fare in case of international bookings 2,00,000 Value of supply @ 10% [B] 20,000 V a l u e of supply [A] + [B] (rounded off) 25,000